Limyadi Company uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,900 units of Product B was received. The standard cost of one unit of Product B is as follows.

Normal capacity for the month was 4,200 machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1. Purchased 6,200 kilograms of raw materials on account at Rp10,500 per kilogram.

2. Requisitioned 6,200 kilograms of raw materials for Job No. 12.

3. Incurred 2,000 hours of direct labor at a rate of Rp78,000 per hour.

4. Worked 2,000 hours of direct labor on Job No. 12.

5. Incurred manufacturing overhead on account Rp250,000,000.

6. Applied overhead to Job No. 12 on basis of standard machine hours allowed.

7. Completed Job No. 12.

8. Billed customer for Job No. 12 at a selling price of Rp650,000,000.

Instructions

a. Journalize the transactions.

b. Post to the job order cost accounts.

c. Prepare the entry to recognize the total overhead variance.

d. Prepare the January 2020 income statement for management. Assume selling and administrative expenses were Rp20,000,000.

Transcribed Image Text:

Direct materials 3 kilograms at Rp10,000 per kilogram 1 hour at Rp80,000 per hour 2 hours (variable Rp40,000 per machine hour; Rp 30,000 Direct labor 80,000 Overhead fixed Rp22,500 per machine hour) 125,000 Standard cost per unit Rp235,000